The fundamental principles of financial regulation

Besides our key recommendations on macro-prudential measures and mark-to-funding, we make proposals on a whole series of minor issues, such as the role of stress tests, the adoption of maximum loan-to-value ratios in mortgage markets, etc., etc. These are gathered up and reported in our conclusion. Overall our intention is to develop a program of practical initiatives that could better attack the key features of externalities and systemic failure in financial markets.